October 16, 2020
Last month, BuzzFeed News published a report that alleged that banks sat on their hands while criminals laundered trillions of dollars over two decades. In the wake of the scandal, commentators have contended that reform is needed. While reform is needed, the report suggests the banks followed the letter of the law—that law being the Bank Secrecy Act and its respective regulations.
October 14, 2020
Last month, the Federal Reserve released a preliminary proposal to update the Community Reinvestment Act. The Fed’s proposal deviates greatly from the free-market, albeit imperfect, revamp of the CRA finalized by the Office of the Comptroller of the Currency earlier this year. The Fed’s proposal would do little to fix the existing problems with the CRA and create even more, inevitably hurting both lenders and borrowers.
October 13, 2020
A 16 year-long aerospace subsidies dispute between the United States and the European Union began another round this week. The U.S. claims that the EU’s Airbus subsidies are unfair. The EU argues that America’s Boeing subsidies are unfair. Both sides are right. But neither wants to admit that the other side has a point, too. The result has been tit-for-tat tariff increases and no subsidy reforms.
October 2, 2020
Recent research from the Consumer Financial Protection Bureau has found that consumers have not experienced significant increases in negative credit outcomes as a result of the COVID-19 pandemic and that negative credit outcomes remain lower than they were prior to the Great Recession. Two new reports help illustrate how consumers have fared during the pandemic.
September 30, 2020
There was at least now some hope of reform of ” the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. The Federal Housing Finance Agency has proposed to move the GSEs out of the government-run conservatorship they were placed into at the dawn of the 2008 financial crisis when the government found them to be nearly insolvent.
September 29, 2020
Earlier this month, the California Legislature passed the California Consumer Financial Protection Law to create a new state-based regulatory agency modeled after the federal Consumer Financial Protection Bureau. If the legislation is signed by Governor Gavin Newsom, he would be approving of a bill that picks winners and losers in the financial services sector and that would hurt consumers.
September 23, 2020
Yesterday, in the most recent installment of CEI’s “Repeal for Resilience” event series, CEI President Kent Lassman welcomed Securities and Exchange Commission member Hester Peirce and former SEC Commissioner Paul Atkins for a discussion on the future of finance regulation. Peirce led off with a description of some of the SEC’s helpful policy responses to the coronavirus pandemic.
September 3, 2020
Investing company Robinhood and its signature smartphone app have taken off in popularity in the last several months. According to Bloomberg, Robinhood has “catapulted ahead of its online brokerage rivals” and attracted more than 3 million clients in the first four months of 2020 alone. With this increasing profile, of course, comes increasing scrutiny.
August 26, 2020
In a recent piece, Washington Post Opinions Contributor Helaine Olen slammed CFPB Director Kathy Kraninger for doing too little to protect consumers during the COVID-19 pandemic. While it’s true that Kraninger went forward with a modest measure to revise the bureau’s preexisting small-dollar loan rule in July, it’s wrong to argue that this was without cause or anti-consumer.
August 18, 2020
The Consumer Financial Protection Bureau recently published a report that explores the use and proliferation of debt settlement. While its findings identify some important trends across the economy and debt settlement industry, it is important that regulators do not use this report as a justification for burdensome new regulation of debt settlement firms.